The country whose production possibilities frontier is illustrated above is currently at position A on the production possibilities frontier. If it wishes to move to position B, it will
A) find this change impossible to achieve given the resources it currently possesses.
B) have to employ all currently unemployed resources to accomplish this.
C) incur an opportunity cost of having to give up some butter in order to make the additional amount of guns desired.
D) be able to make the desired switch only if there is a significant improvement in the technology available to the nation.
C
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Any target value of the nominal interest rate chosen by the Federal Reserve implies a specific value for ________.
A. potential output B. the budget deficit C. government purchases D. the money supply
Which of the following is not a supply-side measure?
a) Increased training b) Providing more information c) Helping individuals to move location to find work d) Increasing spending on existing industries
The balance of payments is:
A. the accounting of trade in goods and capital. B. positive when a country has a trade deficit. C. the accounting of trade in financial assets. D. negative when a country has a trade surplus.
The Case-Shiller index reached its peak in
A) 2006. B) 2007. C) 2005. D) 2008.